When the big ball drops on New Year's Eve, thousands are there to witness that great glittering sight, while millions more watch on national television. Times Square may be the cultural hub of America, the "Crossroads of the World," but its lights have not always shone as brightly as they do now.

Once a glamorous theater district, Times Square and 42nd Street had degenerated into a neighborhood known for the winos and sex shops of "Midnight Cowboy" until New York's business and arts communities stepped in. These advocates of urban revitalization exploited cultural and historic...